ITR-5 Filing Guide for AY 2025-26: For LLPs, Partnership Firms & AOPs
Filing Income Tax Returns is a mandatory obligation for all taxpayers in India, and selecting the correct ITR form based on one’s income sources is essential for proper compliance. The ITR-5 Form is specifically intended for entities such as Firms, LLPs (Limited Liability Partnerships), AOPs (Associations of Persons), and BOIs (Bodies of Individuals). Issued by the Income Tax Department of India, this form allows these entities to accurately report their income and tax details. A clear understanding of the ITR-5 filing process not only simplifies tax return submissions but also helps avoid penalties and ensures adherence to legal requirements. In this article, we provide a comprehensive overview of the ITR-5 filing process.
Latest Update: CBDT Releases Revised ITR-5 Form for AY 2025–26
On May 1, 2025, the Central Board of Direct Taxes (CBDT) officially notified the updated ITR-5 form for the Assessment Year 2025–26. This revision incorporates several key changes introduced under the Finance Act, 2024, aiming to enhance clarity and accuracy in tax reporting.
Major Updates in the ITR-5 Form for AY 2025–26:
Capital Gains Segregation Based on Transfer Date:
Schedule-CG has been modified to distinguish capital gains arising from asset transfers occurring before or after July 23, 2024—the date when critical provisions of the Finance Act, 2024, took effect. This update ensures precise reporting under the revised capital gains tax regime.Recognition of Capital Loss on Share Buyback:
From October 1, 2024, taxpayers can claim capital losses on share buybacks, provided the corresponding dividend income was previously declared under ‘Income from Other Sources.’ This amendment resolves previous inconsistencies in the taxation of buybacks.Inclusion of Section 44BBC – Cruise Business:
A specific reference to Section 44BBC has been introduced for non-resident cruise ship operators. Under this provision, 20% of gross receipts from passenger carriage is deemed taxable income. The updated form now facilitates proper reporting for businesses operating under this presumptive taxation scheme.Mandatory TDS Section Code Disclosure in Schedule-TDS:
To improve transparency and traceability, taxpayers are now required to specify the relevant TDS section code when completing Schedule-TDS in the ITR-5 form
What is ITR-5?
ITR-5 is an Income Tax Return form in India, specifically designed for entities other than individual taxpayers. It is applicable to a broad range of organizations, including Partnership Firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals (BOIs), estates of deceased or insolvent individuals, business trusts, investment funds, artificial juridical persons, and co-operative societies. Compared to other ITR forms, ITR-5 accommodates more complex structures and demands detailed financial disclosures for accurate tax computation.
Who Can File ITR-5?
The following entities are eligible to file ITR-5:
Partnership Firms
Limited Liability Partnerships (LLPs)
Associations of Persons (AOPs)
Bodies of Individuals (BOIs)
Artificial Juridical Persons (AJPs) as defined under Section 2(31)(vii) of the Income-tax Act
Local Authorities under Section 2(31)(vi)
Representative Assessees under Section 160(1)(iii) or (iv)
Cooperative Societies
Societies registered under the Societies Registration Act, 1860, or any other applicable state laws
Trusts (other than those eligible to file ITR-7)
Estates of deceased or insolvent individuals
Business Trusts under Section 139(4E)
Investment Funds under Section 139(4F)
Who Cannot File ITR-5?
The following taxpayers are not eligible to file ITR-5:
Individuals – Required to file ITR-1 to ITR-4 based on income sources
Hindu Undivided Families (HUFs) – Must use ITR-2 or ITR-3
Companies – Must file ITR-6 or ITR-7
Entities filing under Sections 139(4A), 139(4B), 139(4C), or 139(4D) – Includes charitable trusts, political parties, and institutions, who must use ITR-7
Certain Business Trusts and Investment Funds under Sections 139(4E) and 139(4F) – Must file using ITR-7
How to File ITR-5 for AY 2025-26
The following is a step-by-step guide to help you understand how to file your ITR-5 online for Assessment Year 2025-26:
Step 1: Visit the e-Filing Portal
Go to the Income Tax Department’s e-filing portal at www.incometax.gov.in.
Step 2: Login/Register
If you’re a new user, register by providing your PAN details.
If you’re an existing user, log in with your credentials.
Step 3: Select ITR Form
On the dashboard, select “Income Tax Return,” then choose ITR-5 for the relevant Assessment Year (AY 2025-26).
Step 4: Fill in the Data
The ITR-5 form consists of various sections. Here’s an overview of what you need to fill out:
Part A: General Information
Provide basic details such as PAN, assessment year, and address.Schedules
Complete the respective schedules based on your income sources. This may include:Income from capital gains, business income, etc.
Deductions claimed under various sections.
Detailed tax calculations and allowances.
Part B: Tax Computation
The system will auto-calculate your tax liability based on the data entered in the schedules.
Step 5: Verification
After filling out all sections, you’ll need to verify your return:
Digital Signature
If you have a valid digital signature certificate, you can verify and submit your return instantly.Physical Verification (ITR-V)
If you don’t have a digital signature, choose this option. Once submitted, the system will generate an ITR-V form for verification.
Step 6: ITR-V Verification (if applicable)
If you opt for physical verification, follow these steps:
Print two copies of the ITR-V form.
Sign one copy and mail it to the address mentioned on the form (Centralized Processing Centre, Bengaluru).
Retain the other signed copy for your records.
Key Sections of the ITR-5 Form
The ITR-5 form requires detailed information about your entity’s financial activities. Below is a breakdown of the sections to be filled out:
Part A: General Information
Basic details like PAN, business nature, and balance sheet information.
Details of income from business, speculative activities, and various deductions.
Capital Gains
Information about capital gains, including scrip-wise details of equity share sales, STT paid transactions, and depreciation computation.Business & Income Details
Details related to business activity, including income on a presumptive basis under sections 44AD, 44ADA, and 44AE.
Information on losses to be carried forward, unabsorbed depreciation, and allowances under the Income Tax Act.
Deductions and Exemptions
Deduction claims under sections 80G, 80-IA, 80-IB, 80-IC, 80-IE, and other relevant provisions.
Information about foreign income, foreign assets, and tax relief for foreign taxes paid.
Additional Sections
Partnership firm details, tax credits under section 115JC, and information on any tax deducted or collected at source.
Note:
The ITR-5 form must be filed within 120 days from the date of e-filing the return.
Due Dates: When to File ITR-5?
The due date for filing the ITR-5 form depends on whether the taxpayer’s accounts require an audit. Below are the important deadlines for ITR-5 filing:
31st October of the Assessment Year – If the taxpayer’s accounts need to be audited under the Income Tax Act.
30th November of the Assessment Year – If the taxpayer is required to submit a report in Form 3CEB for international or specified domestic transactions.
31st July of the Assessment Year – For all other cases where the accounts do not need to be audited.
Additionally, read: Penalty for Late Filing of ITR
Verification of Return for Audited Accounts
If the accounts require an audit under Section 44AB of the Income Tax Act, the return must be verified electronically using a digital signature.
If the taxpayer is required to submit an audit report under specific sections like 10AA, 44AB, 44DA, 50B, 80-IA, 80-IB, 80-IC, 80-ID, 80JJAA, 80LA(1), 80LA(1A), 92E, 115JB, or 115JC of the Income Tax Act, the report must be filed electronically on or before the return filing due date
Filing the ITR-V (Income Tax Return Verification Form)
Once the ITR-5 form is filed, the taxpayer must print ITR-V (Income Tax Return Verification Form) and send it to the Processing Centre at the Income Tax Department, Bengaluru (560500), by either ordinary or speed post.
Effortless ITR-5 Filing with IndiaFilings
If you’re struggling with the complexities of filing ITR-5 and meeting compliance requirements, IndiaFilings offers a hassle-free, professional solution for LLPs, firms, AOPs, and BOIs. Our expert team ensures accurate preparation, proper documentation, and timely submission of your ITR-5, helping you stay fully compliant with Income Tax Department guidelines. With IndiaFilings, you can simplify the tax filing process with confidence, efficiency, and peace of mind.
